This blog is affiliated with a course at the School of Journalism & Electronic Media at the University of Tennessee, Knoxville. I'll try to use it to share relevant news and information with the class, and anyone else who's interested.

Tuesday, November 8, 2011

Super Bowl Spots at a Record High Price

Post submitted by Molly McCurdy -

Super Bowl advertisers are eagerly buying ad slots at record high prices of $3.5 Million per 30-second spot. According to an article from USA Today, there were only five slots remaining before the season began. Seth Winter, head of sales for NBC Sports, says, “We expect to sell out totally before the end of the year.” Warner followed up by insisting there will not be price discounts available for the remaining slots and all advertisers are required to buy time on other NBC Sports broadcasts as well.
“It’s not in our best interest to allow someone to just buy the Super Bowl. We are only selling in combination with our other assets,” Says Warner.
Some 2012 Super Bowl advertisers that have decided to advertise this year include: GoDaddy.com, Sketchers, Teleflors, Kia, Pepsi, Century 21 and Best Buy. But what is the real appeal of a Super Bowl commercial? According to an article by Advertising Age, Best Buy is a great example of the Super Bowl advertisement appeal.
Best Buy just decided to purchase a 30-second spot in the 2011 Super Bowl for a “specific reason” Barry Judge, Best Buy CMO, says. This is the second time in history the retailer has purchased a Super Bowl spot and Judge explains why, “We think we have something interesting and new to say, and it's going to be about a new thing we're going to launch," Mr. Judge said. "If we weren't launching it, we wouldn't be doing it. I don't know if we're in every year, but we're in because we think we have something really unique to say, and we want to do a really good job of executing it at retail."
When a company buys a Super Bowl slot it shows you are serious about your product and you want to distinguish yourself from other companies in the market. It is a perfect opportunity to not only maintain your current fan base but also introduce a new product or service to a large market area. I don’t see the popularity of Super Bowl advertisements dwindling any time soon, leaving the opportunity for that coveted 30-second spot price to sky rocket to limitless new heights.